Local Government Reorganisation: don’t forget LGPS members

At the time of writing, we are waiting for guidance from the Government about how it expects Local Government Reorganisation (LGR) to impact LGPS funds in England. Most of the documentation produced so far has related to other services, so LGPS officers will doubtlessly welcome some clarity over next steps.

We’ve spent a lot of time thinking about the impact on funds; what work will need doing and how member outcomes can continue to be prioritised. Which brings us to the most important people connected to the LGPS.

The members.

LGR is going to have a big impact on people’s lives. The sad reality is redundancies are a virtual certainty. Some people will welcome this, particularly those looking to retire a little early without a reduction in their pension benefit. But others, whilst welcoming redundancy for the same reason, may not get the offer. Some employees may be keen to remain in post rather than having to find a new job.

From a service perspective, this will lead to LGPS administration teams having to process a spike in leaver activity. But it will also mean dealing with people who are going through a big change which they may not be celebrating. Officers on the frontline who are dealing with member queries will benefit from polishing their soft skills and making the process as smooth as possible.

Outside of this are the people staying in their role but moving to a new employer. This can happen where the contract for the existing outsourced service changes and staff are TUPE transferred to a new provider when the contract is revisited. Changing job, even where the roles remain broadly the same, is stressful. From a fund’s perspective, the process is well-trodden – it means setting up new records and aggregating entitlements - but for members this can be a daunting time.

Some funds will be contacting each affected member to say they have left active service and become a deferred member. They’ll then write again with a welcome pack as they re-join through the new employer. Officers connected to these funds know when this is going to happen. Members almost certainly don’t.

If you know your internal processes could lead to confusion or worry, prompt and effective communication is vital. You’ll need to get the timing right. Too early and members will forget what you said. Too late and the concerns are already in place.

Member communications around LGR need to be clear. So don’t forget to put the member at the heart of what you are doing; after all, it’s their lives being affected.

If you’d like to discuss these changes or explore how we can help you make the most of the opportunities for professional and sole trustees, please get in touch.